Microsoft Xbox is adjusting the project lineup at Obsidian Entertainment. Multiple sources report that the studio has canceled several projects and will participate in the development of a new Fallout game.
This adjustment is part of a broader restructuring within Xbox. Canceled projects include the planned sequel to Avowed, but no names were disclosed for other canceled titles, nor were details provided regarding the specific format or development progress of the new Fallout game.
Sources also revealed that Obsidian Entertainment has laid off approximately one-quarter of its staff. The identities of these individuals were not disclosed, as they were not authorized to speak publicly.
Obsidian Entertainment is a Microsoft Xbox studio headquartered in Irvine, California. The confirmed changes involve the studio beginning work on a new Fallout game while halting multiple projects, including the Avowed sequel.